Flexible Budget and Management Control MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Flexible Budget and Management Control, a fundamental topic in the field of Cost Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Flexible Budget and Management Control MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Flexible Budget and Management Control mcq questions that explore various aspects of Flexible Budget and Management Control problems. Each MCQ is crafted to challenge your understanding of Flexible Budget and Management Control principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Cost Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Flexible Budget and Management Control MCQs are your pathway to success in mastering this essential Cost Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Flexible Budget and Management Control. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Flexible Budget and Management Control knowledge to the test? Let's get started with our carefully curated MCQs!

Flexible Budget and Management Control MCQs | Page 12 of 20

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Q111.
The measure which provides the feedback on manager's performance, considering individual aspects only is classified as

a.

effectively measure

b.

lump sum measure

c.

non-financial measures

d.

financial measures

Discuss
Answer: (c).non-financial measures
Q112.
If the variable overhead flexible budget variance is $37000 and the flexible budget amount is $10000, then the actual incurred costs would be

a.

$27,000

b.

$25,000

c.

$47,000

d.

$57,000

Discuss
Answer: (c).$47,000
Q113.
All the salaries are paid to supervisors and engineers and cost of leasing equipment are classified as

a.

variable setup costs

b.

fixed setup costs

c.

variable batch costs

d.

fixed batch costs

Discuss
Answer: (b).fixed setup costs
Q114.
The fourth step in development of operating budget is to

a.

identify variable overhead cost

b.

compute the per unit rate

c.

choose the budgeting period

d.

select allocation bases

Discuss
Answer: (b).compute the per unit rate
Q115.
If an actual quantity of cost allocation base is $48000 and budgeted quantity of cost allocation base is $28000, then variable overhead efficiency variance would be

a.

$20,000

b.

$76,000

c.

$86,000

d.

$96,000

Discuss
Answer: (a).$20,000
Q116.
If the budgeted total cost in fixed overhead is $465200 and the budgeted total quantity is $8750, then budgeted fixed overhead cost per unit will be

a.

$83.17

b.

$73.17

c.

$53.17

d.

$63.17

Discuss
Answer: (c).$53.17
Q117.
Of the cost allocation base, the difference between actual and budgeted variable overhead cost multiplied by actual quantity for actual output is classified as

a.

variable overhead spending variance

b.

fixed overhead spending variance

c.

constant spending variance

d.

potential spending variance

Discuss
Answer: (a).variable overhead spending variance
Q118.
If the fixed overhead allocated for actual output unit is $9800 and budgeted fixed overhead is $22000, then production volume variance would be

a.

$31,800

b.

$12,300

c.

$12,200

d.

$41,800

Discuss
Answer: (c).$12,200
Q119.
The variance is solely because of the difference between budgeted quantity and the

a.

flexible hours

b.

actual cost

c.

actual quantity

d.

actual price

Discuss
Answer: (c).actual quantity
Q120.
The budgeted quantity of output unit is 250 and budgeted overhead fixed cost is $150, then budgeted fixed overhead output unit will be

a.

$67,500

b.

$57,500

c.

$47,500

d.

$37,500

Discuss
Answer: (d).$37,500
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